No Fault Car Insurance: Does it Matter Who is at Fault?

No fault car insurance can also be referred to as, liability auto insurance. This is a policy that could be required in many states such as: Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, Pennsylvania, and Utah. In many cases, no fault car insurance helps cover expenses due to car accidents. It may be referred to as liability auto insurance (58 – link to be provided) because it generally helps cover costs when you, the driver, are at fault and therefore might be responsible. Depending on the state, the “no fault” person in the accident typically may not be able to sue the at-fault driver for pain and suffering. For more information read the article about No Fault Insurance.

While it is typically thought that the no fault car insurance helps cover costs no matter who is at fault, there may be restrictions based on the U.S. state. Let’s review the potential differences.

  1. Property Damage: Many states may view the damages done on your car as separate from no fault car insurance. You may have to go about making the usual claim through your car insurance company that may require determining who was at fault.
  2. Injuries: While it may be assumed that legal costs could be surpassed under the no fault policy, some states may allow a litigation to take place for injuries which meet a particular threshold. The “no fault” person may be able to sue if a claim exceeds a monetary or a described threshold. In monetary threshold states such as Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah medical expenses may need to be over a particular amount. Typically in states with a described threshold the injury may be required to meet the states description for “injury.”
  3. Pain and Suffering: Some states with add-on no fault car insurance such as Delaware, may offer the insurance as additional coverage. Generally, the injured person might be allowed to sue for additional medical expenses and/or pain and suffering.

While the policy may make it seem like it doesn’t matter who is at fault, it could be important to check the laws in your state. The injured may have rights to sue for additional funds.

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